Canada Media Fund

Toronto, Ontario
March 9, 2009

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Good morning,

I'd like to take a moment to acknowledge the following people who took time out of their busy schedules to be here with us:

Chris Frank of Bell Video Group, Phil Lind of Rogers Communications, Pierre Karl Péladeau of Québécor/Vidéotron, Ken Stein of Shaw Communications, Mark Bishop and Matt Hornburg of marblemedia, and Tim Casgrain of CBC/Radio-Canada.

Ladies and gentlemen,

The Canadian communications industry has played an important role in telling Canadians' stories, shaping our national identity and bringing people together.

In recent years, digital technologies have opened up new opportunities for communications frameworks around the world, and they are definitely having an impact here in Canada.

When the CRTC submitted its report on the Canadian Television Fund last June, stakeholders were divided on the proposal to split the fund between public and private streams.

Nevertheless, the process confirmed that there is consensus in favour of innovation, new media funding, and the importance of reaching audiences. Armed with this knowledge, the Government of Canada has played a leadership role in developing key principles that stakeholders can rally around and build on.

Today, I'm pleased to be here with so many communications leaders to announce a renewed partnership that will strengthen the broadcasting, interactive digital media and Canadian production sectors as they work within this rapidly changing technological environment.

We clearly recognize the important contribution the cultural sector makes in stimulating and strengthening the Canadian economy.

The Economic Action Plan we laid out in Budget 2009 demonstrates this Government's firm commitment to the arts, culture, and heritage by providing 540 million dollars to ensure as much stability as possible for this sector when it is facing challenging times.

As well as ongoing funding of 20.4 million dollars each year, we indicated we would provide an additional 200 million dollars over the next two years for creating and broadcasting high-quality Canadian television programs in English, French, and Aboriginal languages. And 28.6 million dollars over two years to continue to encourage the creation of Canadian interactive digital cultural media works, with 14.3 million dollars annually in ongoing funding thereafter.

In total, this means the Government will provide 134.7 million dollars annually in support of broadcasting, interactive digital media and production.

Each and every one of us in this room knows that the future is digital.

More and more Canadians thrive on digital technology. My BlackBerry and my iPod are integral parts of my life. And I believe Canadians will benefit from initiatives like this one, which make innovative use of new technology to showcase our talent.

The National Film Board, for example, is on the right track. In honour of its 70^th anniversary, the NFB has put the better part of 900 films online free of charge.

Our Government is committed to helping position Canadian entrepreneurs to harness the opportunities of digital technologies.

And I'm very pleased that senior executives from the broadcasting and digital media industry are with me today for this important announcement. I'm here today to announce that the Canada Television Fund and the CNMF are being merged into the Canada Media Fund, which will be supported by $134.7 million dollars. This fund will mean more money for more creativity, more Canadian content available on different platforms.

I would also like to recognize the important financial contribution made by cable and satellite companies to the Fund – bringing the combined Government and private investments to more than $310 million by 2010.

The money earmarked for this partnership is an investment … not a handout. Our Government is providing this funding to help sustain and build viable industries that contribute to the Canadian economy and put Canadians first. With our partners, we want to provide stability to a critical sector and make sure the creation of Canadian content is not in jeopardy.

We will be implementing reforms based on four principles.

We must first get governance and accountability right. We are addressing the concerns raised by the Auditor General. We are establishing a smaller, fully independent board to manage the new Canada Media Fund. We will appoint people who know the industries involved, understand key public policy issues such as the realities facing producers in official-language minority communities, and exemplify the highest standards.

It will be made up of people nominated by the Government of Canada and the five largest private funders. The board will be required to regularly consult with the other private funders, broadcasters, producers, and creators, to ensure the Fund best responds to the realities of the industry. A contribution agreement between the Government of Canada and the Canada Media Fund will set the terms and conditions for the Fund.

Our Government recognizes that audience success and innovation matter. As everyone here knows very well, interactive digital media is changing the face of broadcasting. Therefore, as a second principle, the Fund will reward success and require innovation.

The very definition of broadcasting is changing in the digital environment, with multi-platform distribution, more active consumers, and interactive media. So the Fund will favour projects produced in high definition and those that achieve and demonstrate the most potential to be successful. Further, the Fund will require applicants to design their projects across a minimum of two distribution platforms, including television. A production could include a TV show, interactive games linked to the show, webisodes where parallel stories are developed for the Canadians viewer surfing the Internet, or podcasting specifically developed to be accessed through iPods.

We also want to foster the development of cutting-edge applications and content to drive innovation back into the mainstream forms of content. As technologies and applications are rapidly evolving, the Fund will help build the foundation for future synergies between existing players in the industry and new players by fostering the development of cutting-edge applications and content designed for use across broadband and wireless networks. This will help to ensure that Canada continues to be a leader in applications and advanced content for emerging distribution platforms.

Third, this initiative will focus the investment on programs that Canadians want.

Because Canadians support the Fund through their cable, satellite, and tax dollars, it will focus on the kinds of programs that viewers watch. The Fund will put particular emphasis on drama, including comedy and children's programming. It will also support documentaries, and variety and performing arts if they demonstrate that the market alone would not support their creation. Since Canadians also want programming on other distribution platforms, it will ensure that this programming is available not only on TV on prime time, but also on the Internet and mobile devices. And in focusing on the programming that Canadians want, the Fund will ensure the best use of the creative sector by using predominantly Canadian talent, including writers, directors and performers.

Canadians are proud to live in a country that embraces the cultures of the world and want to interact and learn from each other. The Fund will support Aboriginal and French-language minority productions and respect the particular needs of the French-language market. It will also support programs in third languages where demand and funding are present.

Finally, the fourth principle, is that we will level the playing field. We recognize that the best ideas come with competition, and all broadcasters will be on a level playing field. Consequently, eligibility for funding for broadcaster-affiliated production will be expanded, and broadcaster in-house production will be allowed. This will be done gradually and over time. Levelling the playing field includes provincial educational broadcasters and CBC/Radio-Canada, whose guaranteed envelope will be removed. Support will be given to productions from all regions of Canada.

By bringing the industry together with new forms of Canadian content, this partnership will ensure that Canadians have access to the most innovative and creative content possible.

The Canadian Television Fund and the Canada New Media Fund will continue to operate for fiscal year 2009-2010. The Canada Media Fund will be in place by April 1, 2010.

I want to take this opportunity to recognize Telefilm Canada as an important partner in this initiative. I know that Telefilm will play an important leadership role in overseeing the last year of the Canada New Media Fund, and I look forward to a continuing collaboration with this important institution.

The Canada Media Fund will serve Canadians better. It will support industry, Canadian content, and official-language minority communities. It will support the content Canadians want to watch on the platform on which they want to watch it.

This is an important day as we move forward. I look forward to taking some questions.

Thank you.

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